Global Business Plan of Garmin Global Positioning System - Term Paper Example

GARMIN GPS GLOBAL BUSINESS PLAN Executive Summary: The present paper aims to devise a comprehensive business plan for Garmin Global Positioning System, which looks for launching its business in the Far Eastern country of Taiwan. The main objective behind the business plan is to prepare an all-inclusive presentation by conducting the PESTLE and SWOT analyses of the company in the light of geographical, political, strategic, economic, social, cultural and technological characteristics existing in the Taiwan culture. Objective: The main objective before the management of Garmin Limited GPS is to expand its commercial ventures from the cities of the USA and waters of Atlantic Ocean to the highest peaks of Himalayas and K-2 as well as the entire Far East Asia, so that the people living in remote areas of the globe could take maximum benefit of the navigation and communication devices introduced by the company. It would ensure a huge profit earning for Garmin Limited through business to business (B2B) and business to consumer (B2C) marketing strategy. Garmin Limited has made huge business plans to be incorporated in the wonderful island of Taiwan, where there is an urgent need of such devices because of the geography and culture of the region. Mission Statement: Garmin Limited offers wide range of high quality and economical accessories related to computer software, mobile phone, iPods and other devices to institutions, organizations, individuals and domestic consumers. Being the pioneer company in the field of IT and navigation, all the devices made by Garmin are durable, reliable and authentic ones, which are imperatively supportive for the increase of business volume and commercial profits for the companies and individuals. In addition, these devices are also beneficial for the domestic users and self-employed persons. The main objective behind introducing its devices in Taiwan is covering the vacuum the country undergoes in the absence of a perfect and comprehensive IT and navigation manufacturing brand, so that the maximum benefits could be reached to the end-users at very economical rates. Introduction to Garmin GPS: Garmin Global Positioning System is the world famous brand that has introduced wonderful devices related to navigation and communication and hence brought revolutionary developments in the field of information technology and communications. Though the company was set up with the objective of serving the military forces and strategic departments during 1960s, Garmin Inc. successfully introduced stupendous satellite system in the orbit that proved to be highly beneficial for the US strategic division. Garmin GPS did not confine its technology and equipments to military division only; on the contrary, it was determined to make general public take benefit of the technological advancements, Garmin Inc. made in the field of navigation. Consequently, it revealed its equipments for all and sundry during 1980s. The people welcomed its products, which were sold like hot cakes and companies felt great pleasure in using and applying these devices at offices, industries and organizations. Hence, the company has been in the way to progress for the last three decades. Garmin GPS intends to launch its business in Taiwan, so it would be advisable to look into the geography and cultural traits of Taiwan, which is as under: TAIWAN: Situated in the lap of Himalayas, Taiwan is the largest as well as most beautiful island of China, and is called as the jewel of Far East Asia. The island contains magnificent natural exquisiteness and bewitching scenery, which could mould even the hardest of hearts. Being the business hub of the entire region, Taiwan is particularly famous for trade and commerce all over the globe. Importers and exporters, belonging to various states and countries of the world visit Taiwan for the sale and purchase of various commodities and items for their customers. The exporters meet the businessmen and traders from pole-apart regions of globe; consequently, new contracts are signed and new business deals are made between national and international companies and firms. It is therefore the country is viewed as the commercial nucleus of Asia. Geography: Strategically, Taiwan is located at a very important region of East Asia. It is situated off the coast of mainland China in the South China Sea. In the north-west, Taiwan is the neighbor of south Asian states of Pakistan, India, Bangladesh, Nepal and Bhutan, while New Zealand and Australia are situated in the south of the island. In addition, economic giant Japan is situated in the same ocean and both of them share trade ventures as well as economic and cultural inspirations from one another. In addition, both Taiwan and Japan have been leading the entire globe for the last many decades in electronic accessories and motor industry. Taiwan is composed of the main island of Taiwan and the Penghu Archipelago, which is made up of 64 islands and 21 other smaller islands. (Quoted in marimari.com) Taiwan is especially visited by thousands of tourists every year, and its splendid mountains, superb valleys and zigzag brooks capture the millions of hearts for visiting here time and again. It is therefore Taiwan is preferred by the traders and investors for the conducting of business ventures, deals and contracts. Taiwans highest point is Yu Shan at 3,952 meters, and there are five other peaks over 3,500 meters. This makes it the worlds fourth-highest island. (Wikipedia.org). Furthermore, climate and topography of the island are also very pleasing and hygienic, which force the traders spend their time in the country and take full advantage of the healthy atmosphere of the island during their commercial activities. It is therefore, the island is one of the most appealing places of the entire region at large. The same can be viewed for the Garmin GPS, for which it is a magnificent area to make investments and business activities. By making investment in this island, Garmin can capture the attention of the traders from several divergent regions of the world. Competition: Competition is the beauty of every walk of life, and in business it serves as the most beneficial object particularly for the buyers and consumers, because under competition, the consumers obtain the best of the products at comparatively low price. In addition, competition helps the companies in producing best commodities and merchandise in order to generate maximum profit against their services and intellect. The most meaningful way to differentiate your company from your competitor, the best way to put distance between you and the crowd, is to do an outstanding job with information. How you gather, manage, and use information will determine whether you win or loose.” (Gates, 1999) Furthermore, the extraordinary developments in the fields of science and technology have accelerated the competitive environment everywhere. Garmin GPS has not confined its services to one or two products only. Rather, it carries a long list of equipments related to information technology, communications and navigation. Garmin is a global provider of navigation, communications and information devices, most of which are enabled by Global Positioning System (GPS) technology. It is engaged in manufacturing navigation products that uses GPS technology in order to wirelessly deliver geographic location data through satellite communications. (Retrieved from bharatbook.com) Consequently, it has generated several companies, firms and products as its rivals. While making competitors’ analysis of Garmin GPS, it becomes clear that several other local, national and international companies have arrived in the market offering almost the same products at same or cheaper price. At global perspective, Garmin endures sturdy competition and challenges from the western brands i.e. MiTac, Navico, Hoover’s, TomTom, AstroFly, Litkin, Shenzhen and others, which include the rival companies of Garmin GPS in international arena; while Taoyuan, Kueishan and others are the local companies of Taiwan that serve as the competitors of Garmin in software products and other merchandise. Both these companies produce communications equipment, and are very popular in all parts of China. In addition, the software products prepared by Kueishan Company also give tough time to foreign products including Garmin and others. Both these companies have been offering their services for the last few years, adding to the market share of the Chinese products at national and international arena. Since China is a prejudiced country, which asks her citizens to stick to the Chinese products, it is really a difficult matter for Garmin to make its sure headway in Taiwan. It must have to adopt outsourcing strategic policy by recruiting the local population and making them part of their marketing and management team in order to combat with the competition menace in China and Taiwan. Legal/Political Structure: Like all alien products, the world-reputed brand i.e. Garmin GPS also has to put up with very tough legal policies devised by the political authorities of Taiwan and China, which are not ready to give way to any foreign company in their country. Though Taiwan observes comparatively less strict political policies for the foreign brands, but its attitude is a bit harsh towards the US brands and companies, because the USA is the strongest competitor of China in international markets. Most recently, many US companies, including Google Inc, Microsoft Corporation, Marlboro Tobaccos and others, have faced the biased behavior of the Chinese authorities, which simply means that China is least encouraging towards the alien brands. Consequently, the Garmin GPS must look into these ground realities before embarking upon its business ventures in Taiwan. But things started taking drastic changes with the passage of time. Along with other things, globalization also strongly influenced upon the legal aspects of marketing and investment in China. The 1990s have witnessed significant changes in the policy towards direct investment in China. Before 1990, the Chinese government displayed prejudiced behavior towards foreign investment in the country, but now many corporate firms of international reputation are welcomed by the Chinese authorities. Previously, the government had favored a policy of regional preference for foreign investment. The new emphasis supported a unified national industrial policy for foreign investment in general. (Wang, 2002) Though still Chinese government does not offer same facilities to the foreign investors in its country, and always projects the local firms and producers in order to enhance the volume of the Chinese trade and economy, yet things are experiencing significant changes in the country. Now, China is stated to be a safe heaven for international brands, and foreigners could be seen in every business activity in the country in the aftermath of globalization and outsourcing. Garmin would enter into cordial relationship with the Taiwan authorities and corporate circles in order to make its sure headway on the way to progress in Taiwan. In addition, it must include the local individuals in its staff against different positions, so that the interest of the local population could make the business activities of Garmin Limited GPS a success for the future years to come. Social/Cultural Environment: The total Taiwanese population consists of approximately 23 million people, an overwhelming majority of which is the descendant of Han dynasty of China. The majority of the population has migrated from various parts of China after WWII by 1945. It is therefore the signs and traits of Chinese culture are evident in the everyday life of the Taiwanese people. Literacy rate is very high in Taiwan, and people are well-educated and well-equipped with professional and technological education. Since the political authorities pay special heed to the education of the masses, there exist over 160 institutions offering higher education in local and international languages. Scientific and technological qualification is given particular importance in Taiwan. In addition, cultural and economics education is also taught in Taiwan. Consequently, even a small island of over 20 million people, Taiwan enjoys the status of a prosperous island on the one hand, and a financial hub and economic giant on the other. Nearly half of the Taiwanese population is an earning hand in one way or the other; and the young generation of the country starts working before reaching the age of majority even. Women take active part in nation-building programs, and their participation could be seen in every profession including teaching, medicine, engineering, computer sciences, banking, counseling and others. Though the influence of western culture and civilization can be observed everywhere in the island, yet Taiwanese seem to be sticking to their native customs and traditions in religious practices, art and literature, and mannerism. One of Taiwans greatest attractions is the Palace Museum, which houses over 650,000 pieces of Chinese bronze, jade, calligraphy, painting, and porcelain. This collection was moved from the mainland in 1949 when Chiang Kai-sheks Nationalist Party (KMT) fled to Taiwan. The collection is so extensive that only 1% is on display at any one time. (Open-site.org). Approximately four-fifth of the aggregate Taiwanese population is the follower of Buddhism, Confucianism and Taoism. The religious activities are performed with great enthusiasm and valor all over the country. The influence of folk religion and its practices can be witnessed all over the island, and people really adore the noble teachings of Confucius, Buddha, Tao and other spiritual leaders. Garmin Limited can introduce the devices keeping in mind the cultural values and social norms of the Taiwanese. Since the religious institutions have deep impacts upon the life of the Taiwanese, it can highlight the utility of its products at religious institutions and seminaries along with financial institutions and banking sector. Language is a very important part of a culture. A large proportion of the Taiwanese belongs to Hoklo ethnic group, and speaks Hokkien, Hakka, Standard mandarin and Chinese languages. With the advent of western communities in trade, commerce and other fields, English, French and Arabic languages are also understood and used by the native people. Regional Staffing: Regional staffing simply means the hiring, allocation and placement of individuals from local communities, where a foreign organization is launching its products and services. After the arrival of technological revolution, things began taking drastic changes, and the people started coming closer to each other. It gave birth to the idea of outsourcing i.e. hiring workers and employees as comparatively low cost or cheaper remuneration. The big companies not only invited the educated people to remote countries, but also sought their services in their native lands. All renowned brands including Virgin Atlantic, Dell computers, Hitachi, Red Hat, Apple Inc, Chevrolet Car and others applied the same strategy for the enhancement of their business volume. The same can be applied by Garmin Limited for the rapid growth of its business in Taiwan. The economics reports suggest that the Taiwanese workers should acknowledge the very fact that their boss or employer is sitting in China, because almost all the Chinese companies are working in Taiwan through their products, and these companies hire the services of Taiwanese too. In addition, the bosses of Taiwanese employees are not confined to China only; on the contrary, German, French, British, the US and Japanese entrepreneurs are also regulating their businesses in Taiwan through technological and communication resources. Given the huge potential of the Chinese market, more and more foreign companies view Taiwan as part of "Greater China" and therefore manage their Taiwanese business from their Greater China headquarters in Beijing or Shanghai. While foreign companies justify these moves as the "efficient use of resources," managers at the Taiwanese subsidiaries of these companies suffer from nightmares of being sidelined. (Chen, 2009) Being a wonderful brand, Garmin can also exercise the same policy in Taiwan. Inclusion of the native talented Taiwanese youth may multiply its business activities to a great extent. The company can seek help from the highly educated stratum of society by recruiting them for marketing purposes and office jobs. In addition, the concept of an alien company could also be mitigated by the inclusion of the local population i.e. outsourcing on the part of Garmin Limited. There was a time when new job prospects were opened for the Taiwanese in their native land. It was the era of economic boom, and every investor was trying to make investment in this prosperous financial hub of the world. But the financial downturn paved the way for financial miseries and unemployment. According to a survey, conducted by the Taiwanese authorities, the job prospects for Taiwan population are in constant decrease since 2005, and it is particularly due to downfall of banking sector during the recent depression. Banks were considered the largest recruitment sector, where thousands of Taiwanese were serving at various departments. But these banks are continuously applying downsizing strategy, making the native people unemployed. It is an ideal situation for Garmin Limited, which may start recruitment procedure in Taiwan, and can extract maximum benefit of the skill and potential of the energetic Taiwanese youth. By doing so, it can not only purchase the devotion and loyalty of the educated, skilled and experienced Taiwanese, but also can become one of the most popular IT and communication brands of the entire island. Moreover, if the prices and placement of Garmin products are attractive for the local community, it will be highly supportive for the company. But it does not mean that Garmin should allocate all business positions to the native people. On the contrary, it should appoint its experienced staff from the USA to look after the recruitment, promotion, placement and marketing structure for the quick progress of the company. Global Marketing and Pricing: Global marketing simply means the launching of products from domestic sales to a larger scale i.e. at international level. Global marketing requires the targeting of divergent populations, which serve as the users of the products of the company. Target market is a group of people or organizations for which an organization designs, implements and maintains a marketing mix intended to meat the needs of that group, resulting in mutually satisfying exchanges. (Lamb et al, 2005) Global marketing is quite different from domestic marketing, because at domestic level, the company is already familiar with the choice and requirements of the target population. Further, the marketing strategy can immediately be amended and implemented at domestic level. Moreover, at domestic scale, magnitude of competition is far limited. On the other hand, a company has to lay stress upon high quality, exceptional designing, outstanding presentation and affordable price--- all that is really a hard nut to crack in such an era of perfect competition, where every company has made complete preparation for the sale of its goods and merchandise. Generally, quality, packing and presentation of the products remain one and the same all over the world. For instance, the packing and style of world famous drink i.e. Coca-Cola beverage is sold everywhere in same manner. But in global marketing, companies sometimes change the designs and structure of some products according to the cultural values of the country in which the product is going to be launched. Even price of products also vary from country to country. Hence, price phenomenon maintains very significant role in marketing, promotion and placement of products, and determines its sales volume in future. Price regulates the significance and worth of products, without which assessment of merchandise is almost impossible. It also sets the minds of customers regarding the purchase of different products. Garmin Limited can also fix the price of its devices according to the economic situation prevailing in Taiwan in the light of the strategies devised by China in different parts of the world. It is fact beyond suspicion that the world’s economic and strategic giant i.e. China launches her merchandise at various prices and qualities according to the purchasing capacity of the population. The Chinese entrepreneurs lay stress upon quality maintenance while launching the products in rich countries of Europe and America; and they reduce price level of the same products for the poor states of Asia and Africa. Garmin Limited must also look into all these facts and figures while deciding the global strategy and pricing for its merchandise related to navigation and communications. It should commence an energetic research marketing campaign to estimate the growing requirements of the Taiwanese society. And in the light of research marketing, Garmin should advertise the utility of its products and services in a distinguished manner. REFERENCES: Chen, Yi-Shan. My Boss in China Commonwealth Magazine 2009 (Retrieved from. http://english.cw.com.tw/print.do?action=print&id=11341) Gates, Bill. Business @ The Speed of Thought: Using a Digital Nervous System. Warner Books USA. 1999. 2-3 Lamb, Charles W, Hair, Joseph F & McDaniel, Carl. Essentials of Marketing South-Western College Pub; 8th edition. 2005 382 Wang, Yan. Chinese Legal Reform: the Case of Foreign Investment. 2002 76-81 Taiwan: Society and Culture (Retrieved from http://open-site.org/Regional/Asia/Taiwan/Society_and_Culture) http://www.marimari.com/cONteNt/taiwan/general_info/geography/geography.html http://www.bharatbook.com/Market-Research-Reports/Garmin-Ltd-Financial-and-Strategic-Analysis-Review.html Read More